56 verified providers · 5 cities
Refundable Accommodation Deposit (RAD) Australia: 2026 prices + how it works
The RAD is the single biggest cost in residential aged care – a lump-sum payment for your room, fully refundable when you leave. This page explains how RAD works, the federal protections that apply, the MPIR-driven DAP equivalence + shows real published prices from across our directory.
★Key takeaways
- ✓A Refundable Accommodation Deposit (RAD) is a lump-sum payment for your room in residential aged care – fully refundable when you leave, with the Commonwealth Aged Care Refund Guarantee covering 100% in the event of provider insolvency.
- ✓RAD ↔ DAP equivalence is set by the Maximum Permissible Interest Rate (MPIR), currently around 7.9% (Q1 2026, indexed quarterly by the Department of Health). You can pay any combination of RAD + DAP.
- ✓Maximum RAD is $750,000; above this requires Aged Care Pricing Commissioner approval. Providers must publish all RAD/DAP options on their website + at myagedcare.gov.au.
- ✓Across 56 verified providers in our directory, national median RAD is $550k (range $325k–$1400k). Sydney + inner-Melbourne 4–5 star homes skew highest.
- ✓28-day cooling-off period applies after entry – you choose payment method (full RAD, full DAP, or combination). 14-day refund window after leaving; statutory interest applies if delayed.
Headline numbers
National RAD price snapshot
National median
$550k
across 56 verified providers
Range
$325k – $1400k
cheapest to most expensive published
RAD cap (no approval)
$750k
above this needs ACPC approval
By city
RAD prices by Australian city
Median, minimum + maximum published RAD across verified providers in each city. Sydney + inner-Melbourne run consistently above the national median; Brisbane + Adelaide run below.
| City | Providers | Median RAD | Min | Max |
|---|---|---|---|---|
| Brisbane | 12 | $490k | $420k | $550k |
| Perth | 12 | $538k | $460k | $580k |
| Adelaide | 12 | $518k | $420k | $575k |
| Melbourne | 11 | $829k | $390k | $1400k |
| Sydney | 9 | $719k | $325k | $1015k |
Source: provider-published RAD prices verified against My Aged Care + provider websites. Where a provider publishes a RAD range, the maximum (premium room) is used.
RAD vs DAP
How RAD + DAP are mathematically equivalent
A provider must publish three prices for every available room: the full RAD (lump sum, fully refundable), the full DAP (daily rent-style fee, equivalent value), and a worked example of a combination (part-RAD + part-DAP). The three options are economically identical, set by the Maximum Permissible Interest Rate (MPIR) published quarterly by the Department of Health.
MPIR is currently around 7.9% per the Q1 2026 publication. The formula:
Daily DAP = (RAD × MPIR) ÷ 365
Worked example. A $500,000 RAD at MPIR 7.9%:
- Daily DAP = ($500,000 × 0.079) ÷ 365 = $108.22/day
- Annual DAP = $39,500
- 5-year DAP total = $197,500 (no refund)
If you have $500,000 capital available + want to preserve it for your estate, pay the full RAD – get it all back. If you would rather invest the $500,000 at a higher return + cover the $108/day from income, pay full DAP. A combination is genuinely common, particularly when the lump sum is partially available (e.g. from selling the family home with capital remaining for invested income).
The Aged Care Pricing Commissioner publishes the MPIR rate at health.gov.au schedule of fees + charges. Verify the current rate before any financial decision.
Federal protections
RAD is one of Australia's safest large deposits
Refund guarantee
100% Commonwealth-guaranteed
The Aged Care Refund Guarantee Scheme covers 100% of every Australian RAD with no cap, paid by the Commonwealth if a provider fails. This is stronger than the bank deposit guarantee (which is capped at $250,000 per institution). Funded under Section 53-6 of the Aged Care Act 1997.
14-day refund window
After death or moving out
When you leave the home (or after death), the provider has 14 days to refund the RAD (less any agreed deductions in the Residential Agreement). Statutory interest at the base interest rate applies from day 14 if the refund is late. The estate doesn't need probate to receive the RAD where the residency was structured as joint.
28-day cooling-off
Choose payment method after move-in
After moving in, you have 28 days to decide how to pay – full RAD, full DAP or combination. Provider cannot demand the lump sum during this period. Even after 28 days, you can convert DAP to RAD at any time by paying the lump sum.
Mandatory disclosure
RAD prices must be published
Every approved provider must publish RAD/DAP options for each available room on their own website + at myagedcare.gov.au. If a provider refuses to disclose RAD until you commit, it is a breach of the Aged Care Act. Report to the ACQSC on 1800 951 822.
Negotiation
Can you negotiate the RAD?
Yes – sometimes. Providers cannot charge more than the published RAD, but they can agree to a lower one. The room for negotiation depends on occupancy + demand:
- High negotiation potential: homes with occupancy below 95%, older buildings, less popular floors, larger metro areas with excess supply, ground-floor rooms with limited views.
- Low negotiation potential: 5-star homes in inner Sydney / Melbourne with waitlists, premium suites, low-vacancy facilities, smaller homes with high demand.
How to negotiate.
- Tour the home + confirm you're seriously interested.
- Get the published RAD + DAP options in writing.
- Ask directly: "Is this price negotiable?" – be prepared for "no" but ask anyway.
- If there's flexibility, the discount is typically 5–15% off the headline RAD.
- Confirm any negotiated discount in writing before signing the Residential Agreement.
If you have a placement specialist (free service, paid by the provider), they can negotiate on your behalf – they typically know which homes have current flexibility. The Older Persons Advocacy Network (1800 700 600) can advise but does not negotiate directly.
Sample published RADs
Highest published RADs in our directory
Top 12 by published RAD. Verify the current price + room availability against each provider's website + myagedcare.gov.au before relying on this for any decision.
| Provider | City | Published RAD | ACQSC |
|---|---|---|---|
| Royal Freemasons Royal Freemasons Coppin Centre (Melbourne / St Kilda Road) | Melbourne | $1400k | 4★ |
| Bolton Clarke Bolton Clarke Greenwood (Normanhurst) | Sydney | $1015k | 4★ |
| Jewish Care Victoria Gary Smorgon House / Melbourne Hebrew Memorial Nursing Home (Caulfield) | Melbourne | $1002k | 4★ |
| Bupa Aged Care Bupa Queens Park | Sydney | $978k | 3★ |
| Arcare Aged Care Arcare Brighton | Melbourne | $975k | 4★ |
| Calvary Aged Care Calvary Huntly Suites (Caulfield South / Calvary Kooyong precinct) | Melbourne | $875k | 3★ |
| Mercy Health Mercy Place Parkville | Melbourne | $840k | 3★ |
| Ryman Healthcare Nellie Melba Retirement Village Aged Care Centre (Wheelers Hill) | Melbourne | $829k | 4★ |
| St Vincent's Care Services St Vincent's Care Services Edgecliff | Sydney | $813k | 4★ |
| Uniting NSW.ACT Uniting Wesley Heights Manly | Sydney | $719k | 5★ |
| Montefiore Hunters Hill Montefiore Home | Sydney | $719k | 4★ |
| HammondCare HammondCare Hammondville (Bond House) | Sydney | $691k | 3★ |
Common questions
RAD – frequently asked questions
What's the difference between a RAD and a DAP?
A Refundable Accommodation Deposit (RAD) is a lump-sum payment for your room – fully refundable when you leave (less any agreed deductions). A Daily Accommodation Payment (DAP) is the equivalent paid as a daily rent-style fee for as long as you stay. The two are mathematically equivalent at the Maximum Permissible Interest Rate (MPIR), which is published quarterly by the Department of Health (currently around 7.9% in Q1 2026). You can also choose a combination of part-RAD + part-DAP – pay any portion upfront + DAP on the unpaid balance. Providers must offer all three options.
How much can a provider charge for a RAD?
Up to $750,000 without external approval. Above this threshold, providers must apply to the Aged Care Pricing Commissioner (ACPC) for permission. The ACPC reviews market positioning, facility quality + cost structure before approving the price. Approvals are listed publicly. Premium harbour-view or inner-city suites in Sydney + Melbourne are most common above-cap rooms.
Where can I see published RAD prices?
Every approved provider must publish RAD/DAP prices for each available room type in two places: the provider's own website + the federally-funded My Aged Care provider register at <a href="https://www.myagedcare.gov.au/" class="underline" style="color: var(--vbrand);">myagedcare.gov.au</a>. Prices are required to be displayed before any agreement is signed. If a provider refuses to disclose RAD until you commit, walk away – this is a breach of the Aged Care Act.
Is the RAD ever lost?
No – the RAD is fully refundable when the resident dies or moves out, minus any agreed deductions in the Residential Agreement (e.g. agreed daily contribution toward accommodation). The Commonwealth Aged Care Refund Guarantee protects RADs in the event of provider insolvency: 100% of the RAD is guaranteed by the federal government, with no cap. Refund must be paid within 14 days of leaving, plus interest at the base interest rate from day 14 onward.
Can I negotiate the RAD?
Sometimes – particularly with lower-demand homes or older buildings. Providers cannot charge more than the published price, but they can agree to a lower one. Negotiation room is greatest when: (a) the home has occupancy below 95%, (b) it is a less popular room type or floor, (c) you are willing to commit immediately. Negotiation room is smallest at high-occupancy 4–5 star Sydney + Melbourne facilities. Ask "is this price negotiable?" directly + be prepared to walk away.
What if I can't afford a RAD?
You have three options: (1) pay DAP only (no lump sum, daily rent equivalent), (2) part-RAD + part-DAP combination, (3) low-means residents may qualify for full government-funded accommodation with $0 contribution. Means testing determines which applies – Services Australia conducts the assessment. The Combined Assets + Income Assessment form is the gateway. Many low-means residents end up paying nothing toward accommodation costs.
Is there a cooling-off period after agreeing a RAD?
Yes – you have 28 days from entering the home to choose how to pay (full RAD, full DAP, or a combination). The provider cannot demand the lump sum during this period. Even after the 28 days, your decision can change – you can convert from DAP to RAD at any time by paying the lump sum; converting RAD to DAP requires the provider's agreement. After you move out, the home has 14 days to refund the RAD before statutory interest applies.